COVID-19 cost tracker update

Public Accounts Committee Closed Inquiry
Opened: 30 Apr 2021 Closed: 17 Nov 2021 Parliament page
The National Audit Office supports Parliament, and the Public Accounts Committee in particular, in our scrutiny of public spending and service delivery. During the pandemic the NAO has been tracking the cumulative costs of COVID-19 across Government , providing timely accounting information. The Committee will question senior officials at HM … Read more
2 Recommendations
22 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 6 events
31 Jan
2022
Correspondence
18 Nov
2021
Correspondence
17 Nov
2021
Report published
25 Jul
2021
Report published
27 May
2021
Oral evidence
27 May
2021
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
27 May 2021
View on parliament.uk
COVID-19 cost tracker update
Cat Little · Cabinet Office Conrad Smewing · HM Treasury Sir Tom Scholar · HM Treasury
Title HC No. Published Items Response
Twelfth Report - COVID 19: Cost Tracker Update HC 173 25 Jul 2021 24 Responded
Recommendations & Conclusions
24 results
2 Conclusion
Twelfth Report - COVID 19: Cost Tr…
The value of the cost tracker is lessened by poor data from some government departments...
The value of the cost tracker is lessened by poor data from some government departments and functions. The level of completeness and accuracy of COVID- related data is variable across government departments. Several departments are still not able to provide … Read more
Government Response
2.1 The government agrees with the Committee’s recommendation Recommendation implemented 2.2 HM Treasury has continued to work closely with departments to develop robust methodologies for identifying and capturing the cost … Read more
HM Treasury
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3 Conclusion
Twelfth Report - COVID 19: Cost Tr…
The COVID-19 response means government will be exposed to significant financial risks for decades to...
The COVID-19 response means government will be exposed to significant financial risks for decades to come. As a consequence of responding quickly to the pandemic, government has taken on significant financial risks that are spread across multiple government departments and … Read more
Government Response
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 The government is already committed to active management of fiscal risks, including risks stemming from its COVID-19 response. HM … Read more
HM Treasury
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4 Recommendation
Twelfth Report - COVID 19: Cost Tr…
Achieving value for money from government expenditure during COVID-19 is being compromised by poor quality...
Achieving value for money from government expenditure during COVID-19 is being compromised by poor quality impact assessments and Accounting Officer assessments. Government accepted the need for a higher risk appetite in order to make decisions and move funding more quickly … Read more
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5 Recommendation
Twelfth Report - COVID 19: Cost Tr…
The total value of government-backed loans has increased greatly during the crisis.
The total value of government-backed loans has increased greatly during the crisis. To provide businesses with access to funding quickly during the pandemic, government launched a number of loan schemes, delivered by private sector COVID 19: Cost Tracker Update 7 … Read more
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6 Conclusion
Twelfth Report - COVID 19: Cost Tr…
It will become increasingly important to distinguish between spending that is aimed at economic and...
It will become increasingly important to distinguish between spending that is aimed at economic and societal recovery from COVID-19, from spending in direct response to COVID-19. The cost tracker suggests that around 92% of the cost of government’s COVID-19 measures … Read more
Government Response
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 The government set out its spending plans and choices up to 2024-25 in the Autumn Budget and Spending Review … Read more
HM Treasury
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1 Conclusion
Twelfth Report - COVID 19: Cost Tr…
On the basis of the COVID-19 cost tracker published by the Comptroller and Auditor General,...
On the basis of the COVID-19 cost tracker published by the Comptroller and Auditor General, we took evidence from HM Treasury about the costs of government’s response to the COVID-19 pandemic.1
Government Response
1.1 The government agrees with the Committee’s recommendation. Recommendation implemented 1.2 HM Treasury has worked closely with the National Audit Office (NAO) to support the publication of each version of … Read more
HM Treasury
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7 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury told us that it is tracking and controlling public expenditure on COVID-19 in...
HM Treasury told us that it is tracking and controlling public expenditure on COVID-19 in the same way that it does routinely for all public expenditure, through regular monthly reporting of departments’ spending, which it described as a robust mechanism … Read more
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8 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury has, over the last few months, started to identify items of spending that...
HM Treasury has, over the last few months, started to identify items of spending that are COVID-related, and designate them as such.9 It described how for some areas of expenditure it is straightforward to do so, for example, the business … Read more
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9 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury confirmed that it regards the NAO’s £372 billion estimate of the total cost...
HM Treasury confirmed that it regards the NAO’s £372 billion estimate of the total cost of the government’s response to the pandemic to be a good representation of the total gross lifetime costs of policy decisions driven by COVID-19, and … Read more
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10 Conclusion
Twelfth Report - COVID 19: Cost Tr…
The cost tracker purposefully excludes some financial decisions that government has taken as a result...
The cost tracker purposefully excludes some financial decisions that government has taken as a result of the pandemic to support the recovery from the pandemic, for example the corporation tax super deduction and increases in capital spending that were announced … Read more
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11 Conclusion
Twelfth Report - COVID 19: Cost Tr…
We challenged HM Treasury on why several departments are not able to provide the NAO...
We challenged HM Treasury on why several departments are not able to provide the NAO with a complete assessment of the costs and spend of their COVID-related activity. We heard how there are measures for which estimating the lifetime cost … Read more
Government Response
2.1 The government agrees with the Committee’s recommendation Recommendation implemented 2.2 HM Treasury has continued to work closely with departments to develop robust methodologies for identifying and capturing the cost … Read more
HM Treasury
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12 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury told us of what it is doing to improve its understanding of the...
HM Treasury told us of what it is doing to improve its understanding of the costs of the pandemic. It has provided departments with instructions on how to gather the information that is needed to make cost estimates of COVID-19 … Read more
Government Response
2.1 The government agrees with the Committee’s recommendation Recommendation implemented 2.2 HM Treasury has continued to work closely with departments to develop robust methodologies for identifying and capturing the cost … Read more
HM Treasury
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13 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury reiterated what the Chief Secretary to the Treasury set out in his letter...
HM Treasury reiterated what the Chief Secretary to the Treasury set out in his letter of 1 April 2021 to the Chair of the Treasury Committee: that the COVID-19 pandemic is a national health emergency that has required a response … Read more
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14 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury used the example of vaccines development to explain how government took on necessary...
HM Treasury used the example of vaccines development to explain how government took on necessary risk, in this case to develop vaccines much more quickly than would usually have been the case. The rapid development of a vaccine was central … Read more
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15 Conclusion
Twelfth Report - COVID 19: Cost Tr…
The Chief Secretary to the Treasury acknowledged in his letter of 1 April 2021 that...
The Chief Secretary to the Treasury acknowledged in his letter of 1 April 2021 that a consequence of an enhanced risk appetite is that risks are more likely to crystalize. A clear example of risks from the government’s approach materialising … Read more
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16 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury told us that over the pandemic it had kept the same basic framework...
HM Treasury told us that over the pandemic it had kept the same basic framework for public expenditure decisions, with a strong emphasis on value for money, but that it had adapted it and made it more flexible to recognise … Read more
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17 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury explained that it told accounting officers that throughout the pandemic they remained responsible...
HM Treasury explained that it told accounting officers that throughout the pandemic they remained responsible for assuring themselves that public money was being properly spent, for applying the principles of Managing public money and for accounting to Parliament for their … Read more
Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2021 4.2 The fundamental principles and the accountability framework set out in Managing Public Money have proved enduring … Read more
HM Treasury
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18 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury acknowledged that the process of undertaking impact assessments for some major COVID-19 schemes...
HM Treasury acknowledged that the process of undertaking impact assessments for some major COVID-19 schemes had been challenging and hampered by poor data and evidence.28 It used the example of the excess stockpiles of PPE to illustrate that big lessons … Read more
Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2021 4.2 The fundamental principles and the accountability framework set out in Managing Public Money have proved enduring … Read more
HM Treasury
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19 Conclusion
Twelfth Report - COVID 19: Cost Tr…
The NAO’s COVID-19 cost tracker presents a current estimate of the cost of write- offs...
The NAO’s COVID-19 cost tracker presents a current estimate of the cost of write- offs of government-backed loans made in response to the pandemic of £26 billion.31 HM Treasury confirmed that it recognises this amount as a good snapshot based … Read more
Government Response
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 HM Treasury has provided the resources for the British Business Bank (BBB) to deliver the ongoing administration of the … Read more
HM Treasury
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20 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury referred specifically to the Bounce Back Loan Scheme, which accounts for £22.8 billion...
HM Treasury referred specifically to the Bounce Back Loan Scheme, which accounts for £22.8 billion of the forecast total write-off costs of £26 billion.36 It told us that the first loan schemes had been too slow to grant loans to … Read more
Government Response
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 HM Treasury has provided the resources for the British Business Bank (BBB) to deliver the ongoing administration of the … Read more
HM Treasury
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21 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury told us that it is currently considering its longer-term approach to the management...
HM Treasury told us that it is currently considering its longer-term approach to the management of COVID-19 legacy schemes, including the outstanding loans to businesses. It has not yet decided whether there is benefit in consolidating loan books across departments. … Read more
Government Response
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 HM Treasury has provided the resources for the British Business Bank (BBB) to deliver the ongoing administration of the … Read more
HM Treasury
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22 Conclusion
Twelfth Report - COVID 19: Cost Tr…
The NAO’s latest COVID-19 cost tracker estimates that around 90% of the projected cost of...
The NAO’s latest COVID-19 cost tracker estimates that around 90% of the projected cost of the pandemic will be spent on the government’s response to COVID-19, and around 10% on the recovery phase.40 HM Treasury explained that it is extremely … Read more
Government Response
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 The government set out its spending plans and choices up to 2024-25 in the Autumn Budget and Spending Review … Read more
HM Treasury
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23 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury assured us that in broad terms government’s pre-pandemic plans and programmes have remained...
HM Treasury assured us that in broad terms government’s pre-pandemic plans and programmes have remained largely in place. It told us that the areas where there has been significant reprioritisation or pausing have tended to be the ones that have … Read more
HM Treasury
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24 Conclusion
Twelfth Report - COVID 19: Cost Tr…
HM Treasury expected more reliable information on the cost of the recovery to become available...
HM Treasury expected more reliable information on the cost of the recovery to become available around September 2021, as the uptake and repayments against major schemes like the Bounce Back Loans Scheme become clearer.45 It told us that the government … Read more
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Correspondence 2 letters
31 Jan 2022 Correspondence from Sir Tom Scholar, Permanent Secretary, HM Treasury, re Covid-19 – Lessons Learned, dated 10 December 2021
Parliament page
18 Nov 2021 Correspondence from Tom Scholar, Permanent Secretary, HM Treasury, re Treasury Minute: Covid-19 Cost Tracker Update, 11 November 2021
Parliament page